1. What is Realtor Commission?

In Alberta, real estate agents typically earn their income through commission, which is a percentage of the final sale price of a property. This commission is usually split between the buyer's and seller's agents.

2. How Commission is Calculated

The standard commission calculation formula is:

Where:

• Sale Price — The final selling price of the property in CAD
• Commission Rate — The agreed percentage rate (typically between 3-7%)

3. Typical Commission Rates in Alberta

Details: In Alberta, the typical total commission rate ranges from 5% to 7% of the sale price, which is then split between the buying and selling agents. However, rates are negotiable and can vary based on the property and agreement.

4. Using the Calculator

Tips: Enter the property sale price in CAD and the commission rate as a percentage (e.g., 5 for 5%). The calculator will compute the total commission amount.

5. Frequently Asked Questions (FAQ)

Q1: Who pays the realtor commission in Alberta?
A: Typically, the seller pays the commission, which is deducted from the sale proceeds at closing.

Q2: Is the commission rate fixed in Alberta?
A: No, commission rates are negotiable between the seller and their realtor.

Q3: How is the commission split between agents?
A: The total commission is usually split between the listing and buying agents, often 50/50 but this can vary.

Q4: Are there additional fees beyond commission?
A: There may be additional closing costs, but these are separate from realtor commissions.

Q5: Can I negotiate a lower commission rate?
A: Yes, commission rates are always negotiable in Alberta. Discount brokerages may offer lower rates.